AN ANALYSIS OF INDUSTRIAL CHANGE IN TURKEY. II: SECTORAL DEVELOPMENT AND VALUE ADDING

The success of companies in each sector is related not only with the performance of the company but also with the sectoral development. The value adding level in each sector also creates extra gains that make companies successful. In this paper, regional distribution of the largest companies in Turkey is analyzed. The annual data of the largest companies in the country based on the company performances, sectoral changes, ownership structure and value adding levels are examined below. Trend analysis for sectoral development is made and sectors are classified as rising and falling based on their performances. The data illustrates that the country replaces high value adding sectors with the low value adding ones. The value adding analysis confirms these results. It is also interesting to see that the share of the state rapidly decreases over time while the share of the private ownerships and foreign companies rise rapidly. A trend analysis is also employed for the changes in ownership structure and the results are presented. The overall results depict that the country is becoming a more industrialized; however, new policies and incentives are needed to increase the value adding in each sector.